FTSE100 bulls have a good day

by Malcolm Pryor on 29/11/2012

The attached graph of FTSE100 shows that bulls had a good day Wednesday.
Up until about 3.30 pm bears were in control, pushing price down to as low as 5755 at one point. That all changed in the last hour, with price closing at 5803, creating a daily candlestick with a long lower wick or tail. The lower prices have been at least for now firmly rejected, and in the first hour on Thursday there has been significant follow through with prices rising to 5850.
Also on the chart I have drawn some Fibonacci retracements. The up move from 16 November to 23 November was from 5606 to 5830 and various levels are shown on the chart represent pullbacks of 24% (5777) 38% (5744) 50% (5718) and 62% (5691). If yesterday's low is the low the recent pullback in the upmove then we can see that it didnt make it to the 38% retracement level, showing that the bulls still have energy.